Real Estate Math
A Vermont property with an $8% cap rate has a NOI of $64,000. What is the estimated value?
A$700,000
B$750,000
C$800,000✓ Correct
D$850,000
Explanation
Value = NOI / Cap Rate = $64,000 / 0.08 = $800,000. To solve this, multiply the relevant values: $8 and $64,000 at 8%.. The correct answer is $800,000.. This is a common calculation on the Vermont real estate exam.
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